The recent release of Revival Plan 2 has sparked numerous questions and discussions within the community. This article aims to clarify the details of the plan and provide insights based on personal interpretations. It is essential to note that opinions may vary, and readers are encouraged to share their perspectives.
Revival Plan 2 is currently a proposal and not a finalized plan. Terraform Labs has scheduled a governance vote for May 18, which means the proposal is still subject to approval. As of May 16, there are only two days left for community members to consider the implications of this proposal before the vote takes place.
If the proposal is approved, it will outline a timeline for the network's coordination. However, it is crucial for investors to understand that the plan is not guaranteed. There is a possibility that the proposal could be rejected, leading to further uncertainty regarding the future of the Luna token.
One of the significant aspects of the Revival Plan is the forking of the Terra chain into two separate entities: Terra Classic and the new Terra chain. This structure is reminiscent of the Ethereum and Ethereum Classic split, where the original chain retains its algorithm while the new chain implements changes. Terra Classic will maintain its existing algorithmic stablecoin, while the new Terra chain will operate without it.
The new token on the Terra chain will be called Luna. The distribution plan includes 1 billion Luna tokens, with 25% allocated to a community pool governed by staked governance. Additionally, there will be allocations for developers and existing Luna holders, with specific vesting schedules to prevent immediate sell-offs.
Vesting and cliff periods are crucial components of the token distribution strategy. For instance, a one-year cliff means that holders must wait a year before accessing their tokens. This approach aims to stabilize the token's value by preventing large-scale sell-offs immediately after the launch.
Current holders of Luna and UST tokens will also be affected by the new distribution plan. A snapshot will be taken on May 27, determining allocations for existing holders. However, similar to the new Luna tokens, a significant portion will be locked for a period to maintain price stability.
Investors should approach the Revival Plan with caution. The potential for significant changes and the long vesting periods mean that individuals need to fully understand what they are investing in. It is advisable to consider the long-term implications before making any financial commitments.
In conclusion, the Revival Plan 2 presents a complex landscape for investors and community members. Understanding the nuances of the proposal, including the forking of the chain and the token distribution strategy, is essential. Engaging with the community and sharing insights can lead to a more informed decision-making process.
Q: What is Revival Plan 2?
A: Revival Plan 2 is a proposal aimed at restructuring the Terra ecosystem, currently subject to a governance vote scheduled for May 18.
Q: What happens if the proposal is approved?
A: If approved, the proposal will outline a timeline for the network's coordination, but it is not guaranteed.
Q: What are the potential outcomes if the proposal is rejected?
A: If rejected, there will be further uncertainty regarding the future of the Luna token.
Q: What does forking the Terra chain mean?
A: Forking the Terra chain will create two separate entities: Terra Classic, which retains the existing algorithm, and a new Terra chain that will operate without the algorithmic stablecoin.
Q: How many Luna tokens will be distributed in the new plan?
A: The new token on the Terra chain will be called Luna, with a total distribution of 1 billion tokens.
Q: What are vesting and cliff periods?
A: Vesting and cliff periods are strategies to stabilize token value; for example, a one-year cliff means holders must wait a year before accessing their tokens.
Q: How will existing Luna and UST token holders be affected?
A: Current holders will have their allocations determined by a snapshot taken on May 27, with a significant portion of new tokens locked for a period.
Q: What should investors consider before investing?
A: Investors should approach the Revival Plan with caution, understanding the potential for significant changes and the long vesting periods.
Q: Why is community engagement important in this process?
A: Engaging with the community and sharing insights can lead to a more informed decision-making process regarding the Revival Plan.
